24 Mar Endeavour Mining’s $691 million deal for Semafo creates Burkina Faso gold giant
Endeavour Mining has announced it will acquire Canadian firm Semafo in a US$690.7 million deal that will create the biggest gold producing outfit in Burkina Faso.
The combined group will produce one million ounces of gold a year, according to Endeavour’s chief executive Sebastien de Montessus, extending the company’s dominance in the West African market.
Endeavour shareholders will own about 70% of the combined company, with the remaining 30% going to Semafo shareholders.
Endeavour’s pursuit of Semafo was not abated by the security incident that took place near the latter’s Boungou mine last November. 39 mining employees were killed when a convoy of buses was attacked by gunmen.
While Semafo said last month it expects to restart mining at Boungou in the fourth quarter, De Montessus told Reuters he is ‘confident’ the mine can restart before then.
“Despite the dramatic security issue back in November, Boungou is a great asset on which Semafo has done limited exploration so far,” he said. “I believe the combination of the two groups will help reinforce the overall security around our different mine sites.”
Meanwhile, Endeavour reported last week that an employee at its Hounde mine in Burkina Faso tested positive for the coronavirus, though the facility continued operating.